Orange Q3 demonstrates “soundness of strategy”
October 24, 2024
Orange group has reported Q3 revenues rose 1.6 per cent compared with the third quarter of 2023 (+€153 million) thanks to growth in retail services (+2.5 per cent or +€185 million) and a smaller decline in wholesale services (-3.3 per cent or -€51 million), mainly related to higher unbundling and civil engineering rates in France in the first quarter.
Africa & Middle East is the main contributor to this growth, with revenues rising 10.5 per cent (€182 million), driven by a robust performance in voice as well as increases from its four growth engines (+18.3 per cent in Mobile data, +17.2 per cent in Fixed broadband, +20.7 per cent for Orange Money and +5.8 per cent in B2B across all activities).
Revenues in France increased 1.3 per cent (+€59 million) thanks to faster growth in retail services excluding PSTN (+2.8 per cent), and a smaller decline in wholesale services (-1.9 per cent).
Europe declined (-2.1 per cent or -€38 million) due to wholesale services (-5 per cent or -€37 million) and other low-margin activities, while retail services grew 1.6 per cent (+€20 million).
The decrease in Orange Business revenues (-2.6 per cent or -€50 million) was again due to the decline in Fixed-only revenues (-7.1 per cent or -€56 million). Revenue growth for Orange Cyberdefense was dynamic (+9.7 per cent), while IT and integration services remained stable (+0.5 per cent or +€4 million) in an IT market under pressure.
In terms of commercial performance, the Group maintained its leadership position in convergence in Europe (including France), with a total of 9.1 million convergent customers (+1 per cent), as well as its commercial momentum in mobile contracts and very high-speed fixed broadband accesses. Mobile services had 253 million accesses worldwide (+8.5 per cent) including 94.8 million contracts (+11.7 per cent). Fixed services had 38.7 million accesses worldwide (-3 per cent) of which 14 million were very high-speed broadband accesses, an area of continued solid growth (+13.4 per cent).
In line with the target of slight growth in 2024, and thanks to a solid performance in retail services, Group EBITDAaL for the third quarter increased +2.7 per cent to €3,345 million (following increases of 2.6 per cent in Q2 and 2.3 per cent in Q1). EBITDAaL from telecom activities grew to €3,370 million (+2.4 per cent).
Christel Heydemann, Chief Executive Officer of the Orange group, commented: “I would like to highlight the remarkable work of our teams over this quarter, particularly during the Paris 2024 Olympic and Paralympic Games. It is a source of enormous pride for all of us to have successfully connected this amazing event with more than 3 billion spectators around the world. Our third-quarter results confirm our successful execution of the Lead the Future strategic plan. Our revenue growth of 1.6 per cent and EBITDAaL growth of 2.7 per cent are in line with the Group’s guidance. These solid results are driven by excellent sales momentum and growth in retail services across all geographies.”
“In France, Orange is reaffirming and accelerating its leadership position with growing revenues, thanks to a balanced and disciplined volume/value commercial strategy. This can be seen in the 2.8 per cent growth in retail services and a marketing strategy focused on convergence which is the key to value creation.”
Africa and the Middle East again delivered a very good performance with growth of 10.5 per cent. Our innovative Max-It multi-service digital platform is attracting ever more users. Orange’s activities are a genuine lever for economic development for Africa, progress from which we also benefit. The strong third-quarter results demonstrate the soundness of our strategy, the great competence of our teams and the role we can play as our customers’ trusted operator,” concluded Heydemann.